China's auto parts industry is being “specially focused†globally. Recently, Charles Freeman, deputy assistant trade representative of the United States, said at the hearing of the US-China Economic and Security Review Commission that more and more counterfeit goods that may pose a threat to the personal safety of consumers have emerged in the automotive component industry. And their source is China.
Previously, the United States Association of Motor Vehicles and Equipment Manufacturers (MEAA) has also published a set of data that the annual value of counterfeit auto parts production is 12 billion US dollars, most of which come from China. Brian M. Dugan, MEMA’s director of international affairs, said that in the past two years, the number of counterfeit auto parts produced in China has risen rapidly.
All kinds of unfavorable public opinion have made Chinese parts and components companies passive.
trap
According to relevant media analysis, the reason why European and American auto manufacturers are so disgusted is not only because they are afraid of economic losses. They are even more worried that these counterfeit goods will undermine corporate brand image. As early as April last year, the European Union Chamber of Commerce in China established a special task force whose primary task was to crack down on the counterfeiting of auto parts.
Regarding the accusation that “China’s counterfeit parts flowed to the international marketâ€, Chen Daxia, part of the China Automotive Industry Association’s Parts Business Unit, disapproved: “Although multinationals pay attention to prices when they purchase in China, their procurement procedures are quite rigorous: General procurement has to go through 63 steps. Every step has strict acceptance, and it is almost impossible for counterfeit parts to get through."
At the same time, China’s official statistics are also inconsistent with what MEMA said. According to statistics from the China Association of Automobile Manufacturers, in 2003 China’s auto and auto parts, including motorcycles, exported only US$4.3 billion, and of the 5,000 auto parts companies in the country, 1,200 are foreign-invested companies. At the same time, the company supplies its production plants or parts factories around the world. China's exports of parts and components worth US$4.3 billion last year were mostly contributed by them.
"However, the procurement of spare parts for the domestic auto aftermarket is mainly based on the 'hunter-type' operation method. They tend to emphasize the purchase price and often neglect the quality requirements." said Xu Qingfu, Beijing Huameiheng Electronics Co., Ltd., which makes parts trade.
Jiang Jian, deputy general manager of Delphi Automotive Systems (China) Investment Co., Ltd., also stressed that counterfeit parts only exist in some after-sales service markets and have no impact on OEMs.
Double edge
At a recent seminar on "Extending Auto and Component Exports" organized by the Ministry of Commerce and the National Development and Reform Commission, Wei Jianguo, Vice Minister of Commerce and Director of the National Electromechanical Products Import and Export Office, revealed that the country will adopt "increase the car and zero. The policy of component exports supports seven measures. At the “2004 China Auto Parts Transnational Purchase and Trade Fair†held in Shanghai, the global 200 million euros of tentative purchase orders brought by 15 auto parts manufacturers attracted thousands of auto parts suppliers in China. The actual actions of the company and the attitude of the government are mutually compatible.
“The opportunities for Chinese parts and components to enter the European and American markets through the purchase of multinational giants are increasing. This has caused auto parts makers in Europe and the United States to worry about them.†said a consulting firm staff member for foreign parts investors. “On the one hand, China’s parts and components have a strong price competitive advantage. On the other hand, local auto parts manufacturers are also worried that the transfer of manufacturing bases to China will result in the loss of job opportunities. Therefore, at this time, the relevant US authorities will issue 'Chinese counterfeit parts'. It's not difficult to understand that it is quite high.†Some analysts believe that in the year of the US presidential election, the “donkey†and “elephant†parties are struggling to establish their own image of revitalizing the U.S. economy. Therefore, it is absolutely necessary to defend American jobs. Do not dare to slack off.
“Actually, as early as two years ago, the United States had a similar formulation, saying that the quality of parts imported from China could not meet the requirements, leading some companies to reduce the purchase of Chinese parts and components.†Xu Xiaopeng, executive director of China Parts USA : "But in recent years, American automakers have begun to revisit China, including some spare parts manufacturers are preparing to move to China on a large scale." In the United States, the cost of building a car from General Motors is 300 to 400 dollars lower than that of Ford. The contribution of China's spare parts can not be underestimated.
Most of China’s parts and components exported to Europe and the United States are contributed by wholly foreign giants in China’s wholly owned or joint ventures, such as Delphi and Visteon. If the relevant US agencies are allowed to make policies or regulations that are not conducive to their exports, these companies that have moved into China are also equivalent to breaking the back road. "The warning of Charles Freeman does not mean that the United States will take concrete actions that are unfavorable to China's exports of parts." Jiang Jian said: "Delphi has its own interest representatives in the National Assembly and will stand up to speak when necessary."
handle
Jiang Jian pointed out that the U.S. warned of Chinese parts and components may well be only a formal "performance." Even if there are corresponding penalties, it may only be limited, and it is difficult to influence the multinational parts and components companies that mainly support OEMs.
On the other hand, the private-sector companies of domestic component exports may be greatly affected, because now European countries and the United States attach more importance to intellectual property than ever before; an important issue for this Chinese trade delegation to visit the United States is related knowledge. The issue of property rights. "It's hard to say that parts and components companies will not be sued by foreign companies in the name of infringing intellectual property rights like the entire vehicle company," said one person in the industry. It is understood that some multinational corporations have already begun an in-depth investigation so that when the time is ripe, China's spare parts companies will be "lethal."
In addition, China’s current exports of parts and components are relatively small, and the nerve stimulation of foreign labor organizations is also relatively small. However, according to the plan of the Ministry of Commerce, China’s auto and auto parts exports will reach 15 billion to 20 billion U.S. dollars in 2005 and 70 billion to 100 billion U.S. dollars in 2010. Wei Jianguo, the vice minister of the Ministry of Commerce, publicly stated that "China is likely to become the global auto parts supply center in the future." By then, China's parts industry will have a bigger "target" in the world. If domestic companies are not fully prepared, trade sanctions will be relentless if they are seized.
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